Posts Tagged ‘Communist Manifesto’

Karl Marx (1818-1883)

I called into the March 20, 2013 episode of Truth Hertz with Charles Giuliani (at 1:49:04) about Karl Marx, the Austrian School of economics, and gold.

I mentioned how Engels encouraged Marx to write more about economics, and how Marx said he didn’t want to write anymore economic “scheisse” (sh*t), and how Marx was really the front man for others, in being associated with a secret society (The League of the Just), and it was Engels who posthumously published the second and third volumes of Das Kapital.

The important part of the plank in the Communist Manifesto calling for a central bank is that it will have an exclusive monopoly on credit, and that the credit is supposed to be tied to gold, as we learn from reading Marx’s Das Kapital.

Whether it’s Marx, Mises, Rand, Rothbard or Greenspan, they all lead you to the same place of a gold standard, whether government-regulated or so-called free market.

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Hammer and sickle

In criticizing the privately-owned Federal Reserve, some point to the establishment of a central bank as one of the 10 planks of the Communist Manifesto.

That’s true, but it’s not the whole story.

The fifth plank of The Communist Manifesto is:

Centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly.

Therefore, the Communist Manifesto doesn’t just call for a central bank, but a public central bank, and not just a public central bank, but a public central bank with an exclusive monopoly of credit.

Criticism of the Federal Reserve is justified on many levels, including constitutional and moral, but not on the basis of it being a plank of the Communist Manifesto.

The central United States Treasury is authorized by the Constitution, as is Congress’ exclusive public power to coin money, but the Founding Fathers certainly weren’t communists, since communism, as later espoused by Marx and Engels, is in complete opposition to the form of government the United States had which made it so economically successful.

Congress’ exclusive public power to coin money doesn’t prohibit private individuals or non-corporate associations of individuals from coining currency, nor from them accepting it as payment for goods and services or private debts. Nor does that power have to be exercised, just as its power to declare war doesn’t have to be exercised.

Nearly all detractors of the Federal Reserve I’ve heard from point to the failure of all three central banks under the Constitution of the United States, but fail to point out that they were all majority privately-owned, which is an important omission, since privately-owned entities tend to serve the interests of their shareholders and not some wider group, such as the general public.

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